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Net worth represents the total value of an individual’s or entity’s assets minus their liabilities. It provides a comprehensive snapshot of financial health, indicating what someone owns after all their debts are paid. This calculation encompasses various assets such as cash, investments, real estate, and other valuable possessions, while liabilities include debts like mortgages, loans, and credit card balances. A positive net worth signifies a healthy financial position, whereas a negative figure suggests liabilities outweigh …